A few days ago, when Ant Group announced the acquisition of Yiu Shing Securities, the market speculated whether this move was to backdoor list Ant Group or some of its businesses. During the May Day holiday, news that Ant was preparing to list its international business in the Hong Kong market "spread like wildfire."

In fact, the major structural changes at Ant Group in March 2024 may have foreshadowed this listing plan. Similar to Alibaba Group's "1+6+N," Ant Group at the time also spun off three independently operated subsidiaries with their own boards: Ant International, OceanBase, and Ant Digital Technologies.

Among them, Ant Digital Technologies and OceanBase mainly provide B2B technology services such as fintech, security tech, and database services. The rumored-to-list Ant International primarily offers payment services like the international version of Alipay (C2C payments), Antom Global (B2B acquiring), and WorldFirst (cross-border trade payments). Other domestic businesses like Alipay and consumer finance remain under the group.

However, according to Dolphin Research, the earlier acquisition of Yiu Shing Securities was likely not for this "backdoor listing" of Ant International. Under Hong Kong Exchange requirements, if a listed company is acquired and the newly injected assets exceed the size of the listed company, it triggers strict regulatory scrutiny equivalent to a new listing. Therefore, a direct listing under a new entity is relatively simpler.

Since there is no further disclosure yet, the potential valuation of Ant International and its impact on its affiliate—Alibaba—cannot be determined. But reports indicate Ant International accounts for about 20% of Ant Group's total revenue. Ant Group was valued at around 570 billion RMB in its 2023 buyback plan and the 2024 Hurun "Global Unicorn List," which can serve as a preliminary reference. $Alibaba(BABA.US) $Hundsun(600570.SH)